June 4, 2007

Indonesia's Japfa to boost poultry production with new factories

Poultry and aquaculture firm PT Japfa Comfeed in Indonesia is enhancing production capacity with the construction of two new factories costing Rp 100 billion (US$11.3 million) that would boost its poultry production by 20 percent.

The company will issue its first bond, worth Rp 500 billion (US$5.6 million), in June 2007, for new factories in Bati Bati, South Kalimantan, and in Padang, West Sumatra, Indonesia.

The Bati Bati plant is expected to commence operations by the end of this year, while the Padang plant, which is still in the early stages of construction, would begin operations in the first quarter of 2008, said Japfa director Herry Wibowo.

With the establishment of these two factories with a total capacity of 360,000 tonnes per year, the company's poultry processing capacity will increase 20 percent to 2.08 million tonnes from the current 1.72 million tonnes.

Japfa, which currently operates seven poultry processing plants in Java, Sumatra and Sulawesi, is also building a corn processing plant in Grobogan, Central Java, which will supply raw materials to its poultry processing factories.